Create an IT Sourcing Strategy
Increase IT value through insourcing, co-sourcing, and outsourcing.
RETIRED CONTENT
Please note that the content on this page is retired. This content is not maintained and may contain information or links that are out of date.Operating without a sourcing strategy can result in:
- Dissatisfaction from business stakeholders
- Rise of shadow IT
- No procedures or principles to guide sourcing decisions
- No understanding of the sourcing situation within the IT organization
- Loss of opportunity to leverage vendors
- Loss of opportunity to better utilize staff and resources
Operating with a cohesive sourcing strategy can result in:
- A clear systematic manner of making sourcing decisions
- Reduction in costs
- Improved ability and increased capacity to focus on critical activities
- Improved quality of IT services and capabilities leading to higher stakeholder satisfaction
- Opportunities for vendors to become strategic partners
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Module 1: Determine Mandate and Scope
The Purpose
- Determine how the sourcing strategy will be utilized and what it is expected to cover.
Key Benefits Achieved
- The sourcing strategy project is planned and scoped to ensure that it addresses the appropriate business drivers.
| Activities: | Outputs: | |
|---|---|---|
| 1.1 | Identify and interview target audience groups. Define project mandate. |
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| 1.2 | Define the scope of the sourcing strategy. |
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| 1.3 | Summarize the approach in a sourcing strategy project charter and secure approval. |
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| 1.4 | Launch effectiveness assessments. |
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Module 2: Assess Sourcing Drivers and Constraints
The Purpose
- Understand the internal and external business factors that will influence the sourcing strategy.
Key Benefits Achieved
- The sourcing strategy will have a business foundation – understanding the business factors will make the strategy relevant and contextualizes the decisions that IT must make to better enable the business.
| Activities: | Outputs: | |
|---|---|---|
| 2.1 | Identify business imperatives. |
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| 2.2 | Conduct a PESTLE analysis. |
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| 2.3 | Conduct a business SWOT analysis. |
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| 2.4 | Identify implications for the sourcing strategy and opportunities to innovate. |
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| 2.5 | Begin building the strategy map. |
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Module 3: Evaluate Current State
The Purpose
- Understand where the organization stands in terms of digital maturity in a holistic fashion.
Key Benefits Achieved
- Produce a summary of digital maturity to benchmark against the target state in a holistic format.
| Activities: | Outputs: | |
|---|---|---|
| 3.1 | Identify IT initiatives. |
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| 3.2 | Conduct an IT SWOT analysis. |
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| 3.3 | Define current sourcing models. |
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| 3.4 | Review effectiveness assessments. |
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Module 4: Develop a Target-State Vision and Identify Initiatives
The Purpose
- Define the goals of the sourcing strategy and the final target state that the strategy needs to achieve.
Key Benefits Achieved
- Having the target-state vision will allow the organization to plan out the initiatives needed to achieve the target state from the current state.
| Activities: | Outputs: | |
|---|---|---|
| 4.1 | Create a list of strategic sourcing goals. |
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| 4.2 | Select sourcing criteria. |
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| 4.3 | Select target sourcing models. |
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| 4.4 | Select transition approaches. |
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| 4.5 | Create a list and evaluate initiatives. |
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Module 5: Create a Sourcing Strategy Roadmap
The Purpose
- Create an execution schedule based on a prioritized list of initiatives.
Key Benefits Achieved
- Finalize the necessary transition initiatives based on the target state and the identified gaps.
- Secure approval for the sourcing strategy.
| Activities: | Outputs: | |
|---|---|---|
| 5.1 | Prioritize initiatives. |
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| 5.2 | Assess vendor management capabilities. |
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| 5.3 | Identify risks and mitigation tactics. |
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| 5.4 | Create the final roadmap. |
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